RBA cuts cash rate to 2.5%

by AB06 Aug 2013

The RBA has just announced a 25 basis point cash rate reduction, bringing the official interest rate down to a record low 2.5%.

Today’s announcement mirrors Bloomberg’s survey of 26 economists, 25 of which anticipated the cut.

A speech made late last week by RBA governor, Glenn Stevens, also indicated another rate reduction was on the cards, with Stevens admitting the RBA was becoming increasingly concerned about major areas of the Australian economy, particularly the passing of  mining and credit growth ‘booms’.

Many brokers will be taking this information straight to clients, as 1st Street Home Loans founding director, Jeremy Fisher, outlined in an interview with Australian Broker earlier today.

“First and foremost, we’ll get in touch with any clients that are due to settle and looking at making any necessary changes to their loans. And then we’ll go back and review any clients that are, I guess, a ‘watchlist’. So it’s pretty much just keeping our clients informed of the change.”

Fisher said 1st Street sends out a bulletin to all their clients immediately following RBA cash rate announcements in order to keep them updated.

“Then we just go back to our watchlist and touch base with everyone that’s kind of doing things as we speak – because that may or may not influence what they’re doing.”